Inc vs. LLC

Mike Hanson · 03-24-2009, 03:20 PM

Which is better for legal protection and tax benefit for a P&C agent an LLC or Inc.?
We would have 1 owner and 2 employees.

Thanks
Mike

briko3 · 03-24-2009, 03:41 PM

Either one should work as well as the other for the protection you're looking for. S-corp or LLC would provide the same tax benefit unless you own land. If you own land, you can bypass some tax if you have an LLC.

Mike Hanson · 03-24-2009, 07:44 PM

Does anyone know if insurance carriers care if you are an Inc or an LLC. I used to be with Farmers and they would not let me be an LLC but they are a strange company...

briko3 · 03-24-2009, 08:08 PM

Most financial companies are incorporated. Personally, that's the route that I would go.

Paradigm · 03-24-2009, 08:11 PM

If you are going to have employees a corp. is best if not and its just you and partners an LLC.

xrac · 03-25-2009, 08:00 AM

Originally Posted by Mike Hanson

Does anyone know if insurance carriers care if you are an Inc or an LLC. I used to be with Farmers and they would not let me be an LLC but they are a strange company...

Insurance companies will not care either way. There are tax advanatages for operating businesses to be S corps but it is better for real estate to be held in an LLC. You need to set down with a good CPA and discuss this.

moonlightandmargaritas · 03-25-2009, 08:02 AM

Originally Posted by xrac

There are tax advanatages for operating businesses to be S corps

An LLC can make an election to be taxed as an S corporation, if desired.

bobson · 03-25-2009, 09:34 AM

Originally Posted by Mike Hanson

Which is better for legal protection and tax benefit for a P&C agent an LLC or Inc.?
We would have 1 owner and 2 employees.

Thanks
Mike

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